HELB Deductions
Understanding how HELB loan repayments affect your taxes.
What is HELB?
Higher Education Loans Board (HELB) provides loans to Kenyan students for university education. Repayments are deducted directly from your salary by your employer.
Tax Treatment of HELB Deductions
Good News: HELB is NOT Tax Deductible
HELB repayments are deducted from your net salary (after PAYE), not from your gross salary. This means HELB deductions do not reduce your taxable income.
How It Works
Step 1: Calculate PAYE
PAYE is calculated on your gross salary (before HELB deduction).
Step 2: Deduct PAYE, NSSF, NHIF, Housing Levy
Standard deductions are made from your gross salary.
Step 3: Deduct HELB
HELB is deducted from the remaining amount (after all tax deductions).
Worked Example
Monthly Salary Breakdown:
Notice that HELB is deducted after PAYE, not before. This means HELB doesn't reduce your tax liability.
HELB Repayment Rates
Standard Deduction Rates
- Minimum: KES 500 per month
- Standard: 1% of gross salary (if earning above KES 50,000)
- Maximum: Up to 8% of gross salary (for high earners)
Your employer will deduct the appropriate amount based on HELB's guidelines and your loan balance.
Important Points
HELB is Mandatory
Once you start earning, HELB will instruct your employer to deduct repayments. You cannot opt out of this deduction.
Check Your Payslip
Your payslip should show HELB as a separate deduction line item, clearly marked and deducted after tax.
Annual Return
HELB deductions do not need to be declared in your annual tax return as they don't affect your taxable income.